The United States House Financial Services Committee Chairman French Hill and Digital Asset Subcommittee Chairman Bryan Steil have jointly released a stablecoin regulation draft.
FOX News reporter Eleanor Terrett explained that the new bill aims to “establish a regulatory framework for U.S. stablecoins.” The 47-page-long document sheds light on the upcoming stablecoin regulatory framework’s structure aimed at regulating dollar-backed stablecoin payments. Hill commented on the bill:
“Building upon our work on digital assets in the last Congress, our discussion draft will provide clarity for payment stablecoins and ensure a federal and state path for stablecoin issuers. Subcommittee Chairman Steil and I look forward to receiving feedback from the public and working in tandem with the Trump Administration and our colleagues in the House and Senate to make sure we get this right and deliver a dollar-backed stablecoin for the American people.”
The details
The news follows recent reports that United States President Donald Trump’s administration plans to regulate stablecoins and bring the companies behind them onshore. Trump’s crypto czar, David Sacks, recently said that that stablecoins are among the administration’s key focus and added:
“I think the power of stablecoins is that it could extend the dollar’s dominance internationally and extend it online digitally.”
The proposed bill also bans stablecoins backed exclusively by self-issued digital assets for the next two years and mandates that the Secretary of the Treasury study the risk of such digital assets. The secretary is expected to deliver a report in under a year.
The report follows Tether, the issuer of the world’s leading stablecoin USDT, recently announcing that it is moving to El Salvador, the world’s first country to declare Bitcoin (BTC) as its legal tender. The decision follows a long series of conflicts with global regulators, including previous United States administrations.
